Tax Filing | Online trades

[birjubanarasi]

Thanks rjs, but another confusion from your post/reply.

1)The profits are liable to 10% tax or 30% tax?
2)Is it true that profits on shares are calculated seperately @10% and will not be added on your net annual income(from company salary)?

Best Regards,
Birjubanarasi

 

[sattimes]

Thanks rjs, but another confusion from your post/reply.

1)The profits are liable to 10% tax or 30% tax?
2)Is it true that profits on shares are calculated seperately @10% and will not be added on your net annual income(from company salary)?

Best Regards,
Birjubanarasi

1) it is 10% if u trade in cash segment and 30% if u in margin
2)i also want to know.. hope somebody clarifies

rdgs
satish

 

[manish_sat]

it is 10% - short term capital gain....

 

[rjs]

I will try to clear ur doubts.
First I will define a trader
Trader is a person who trades in the margin segment or in the derivatives (F&O) segment. If you have no transactions in the margin/derivative segments you are not a trader BUT you MAY opt to be considered as a trader, if you want to carry forward your losses.
Income of a trader is business income (You can deduct STT and other expenses while calculating profits if you are trader). And business income is taxable at 30%.
ONCE YOU ARE A TRADER YOU ARE LIABLE TO 30% TAX ON YOUR CAPITAL GAINS EVEN IF IT IS IN CASH SEGMENT.

If you are not a trader according to the above definition then you are liable to 10% tax on short term capital gains and no tax on long term. Hope I have made things clear this time.

By the way definition of trader is under dispute and as long as a proper definition is not presented you may use the above definition.

 

[patelnarendra]

i am salaried person my income from salary is 700000 and i loss in share market rs. 500000 in intra day also 290000 in shortterm loss in share market. which form i have to fill up.can itr-4 or how can i know that my turn over is more than 40lacs in intradays trading.

 

[lvgandhi]

I would like to know whether STT id deductible from tax to be paid?
Further I like to be clarified that Brokerage, Service tax,STT and Stamp duty is added/deducted from buy/sell transaction of delivary trades. I feel
Profir=sellvalue-buyvalue-(brokerage+ST+STT+StampDuty)on both sides. Am I correct? If not any pointer to any doc which says otherwise.

 

[diosys]

i am salaried person my income from salary is 700000 and i loss in share market rs. 500000 in intra day also 290000 in shortterm loss in share market. which form i have to fill up.can itr-4 or how can i know that my turn over is more than 40lacs in intradays trading.

You can setoff the loss incurred in day trading as well as short term loss IF AND ONLY IF you are classifiable as a investor and not a trader.....By seeing the quantum of loss generated by you i believe you have done some very heavy transactions.....You might get into a tangle with the Income Tax Department as they would want to classify you as a trader and accordingly you would be taxable under the head of Busines and Profession....In that scenario the setoff of lossess is not permissable from the salary and you would be required to carry forward this loss for a max of 8 years.....

Moreover if you have sold worth more than 40 Lac in a year then you are liable also for tax audit....

Also you need to file ITR-4 in both the cases...i.e. Capitral gain or Business income

 

[diosys]

I would like to know whether STT id deductible from tax to be paid?
Further I like to be clarified that Brokerage, Service tax,STT and Stamp duty is added/deducted from buy/sell transaction of delivary trades. I feel
Profir=sellvalue-buyvalue-(brokerage+ST+STT+StampDuty)on both sides. Am I correct? If not any pointer to any doc which says otherwise.

STT is a sort of tax paid in advance just like advance tax....It is only adjustable against the profit you generated from securties sale purchase and not against any other income....

You formula is correct to determine the correct sale value....

 

[girish59i]

hi sir

from which date the law of 7.5% perks for rentfree accomdation is enforce can you help me